Boot Barn saw a 6.5% increase in total net sales to $374.5m from $351.6m in the second fiscal quarter ended 30 September 2023. While consolidated, retail and e-commerce same store sales saw a downward trend.
The increase in net sales was attributed to the incremental sales from new stores opening over the past twelve months, partially offset by the decrease in consolidated same store sales.
Income from operations decreased $5.6m to $38.6m, compared to $44.2m in the prior-year period.
Net income was $27.7m as opposed to $32.1m in the same period last year primarily due to changes to state tax rates, partially offset by income tax accounting for share-based compensation.
Jim Conroy, president and chief executive officer at Boot Barn Holdings Inc, believes the sequential decline in same stores sales this quarter was driven by a macro pull back in customer demand.
However, Conroy adds: "I am pleased with our second quarter results which included solid sales growth, merchandise margin expansion and earnings achievement which was at the high end of our guidance range. We believe that our inventory levels and expense structure are well positioned as we enter the holiday season.
"We opened 10 new stores in the quarter and continue to be encouraged by the new store performance across the country. Exclusive brand penetration expanded more than 600 basis points as our brands are resonating well with the consumer. Our average store sales volume remains at elevated levels with a modest 3.8% decline in retail store same store sales for the quarter."
The company pointed out it is updating guidance for the fiscal year ending 30 march 2024, superseding in its entirety the previous guidance, and now expects to open 52 new stores in addition.
